Undoing The Economic Damage Done By President Obama

Like him or not, President Trump is a businessman. He has also encouraged Congress to do things that make sense from a business perspective. He worked hard to undo the damage done by the economic policies of the Obama administration–he has decreased regulation, lowered corporate taxes, and it working hard to put Americans back to work. Well, it looks as if Congress has also decided to help encourage the American economy.

The Daily Caller reported yesterday that the Senate had voted 67-31 to roll back some of the provisions of the Dodd-Frank bill. At this point I need to mention that the Dodd-Frank bill was a supposed solution to the housing bubble, but never actually addressed the read source of the problem. The video below explains the true source of the problem.

Below is a nine-year old YouTube video I have repeatedly posted. It is the most honest history of the housing bubble I have seen. It is embedded because I am afraid that someday YouTube will take it down:

The DC Caller Article reports:

Seventeen Democratic senators joined Republicans in the Senate to approve the roll back.

The bill is the brainchild of Senate Banking Committee Chairman Mike Crapo and aims to rework a number of the protective barriers Dodd-Frank put between consumers, banks and the greater economy in the wake of the 2007-2009 Great Recession.

“This bill has received widespread support for good reason: the cycle of lending and job creation has been stifled by onerous regulation,” Crapo said on the Senate floor prior to Wednesday evening’s vote.

Dodd-Frank was originally intended to increase transparency by implementing a consistent set of regulations aimed at closing loopholes and making firms accountable for their own mistakes. The bill attempted to shift the burden of major financial mistakes from taxpayers to market participants, ensuring those who partake in risky investment practices would bear the financial burden of their mistakes. Dodd-Frank promised to “end too big to fail” and “promote financial stability.”

Large banking institutions have grown dramatically since the passage of Dodd-Frank despite the act’s intentions, and small community banks have incurred serious losses as they try to keep up. Crippling regulations saddled smaller banks, forcing American consumers to market with fewer investment vehicles and greater costs.

Even if Dodd-Frank were actually attempting to address the true cause of the housing market collapse, it failed miserably.

There is some question as to whether or not the bill can pass in the House of Representatives.

Just as a reminder, I would  like to post the content of an article that I wrote in March of 2009 here:

I don’t have a link on this because I don’t want to get people in trouble.  This is a true story, but I will leave the specific names out.  This is truly a tale of the upside down world we currently live in.

There is a small local bank in a city in Massachusetts.  It is not a rich city, and the city has the reputation of being a rather ‘rough’ city.  The bank is a small local bank that has probably been in business for twenty or thirty years.  The bank has had no foreclosures on property that it owns this year.  The bank had made a small profit last year.  Almost (if not) all of the mortgages the bank has given out are current.  No property is currently in foreclosure.  This rather quiet little bank is simply doing its job of being a small, local bank as best it can.

Last week the bank got a letter from the federal agency that regulates the bankling industry in this country.  The letter had done its annual review of the bank and was sending the results to the bank.  The letter was highly critical of the bank–the agency felt that the bank had not created enough sub-prime mortgages and that it had not done enough lending to people in lower income brackets with bad credit ratings.  Duh.  That’s why the bank is not in need of bailout money!!

The time has come for a little common sense on the part of the government.

The real cause of the housing crisis was the federal government. How can we manage to get them under control?

A Year Later

On Friday, Investor’s Business Daily posted an article detailing the impact of President Trump‘s economic policies. The fact that President Trump is a businessman rather than a politician has had an impact on his economic decisions and thus on the American economy. How has that worked out?

The article reports:

Stock market: The Dow Jones industrial average rose about 31% over the past year, “more than any other president since Franklin Roosevelt,” CNBC.com reminds us. Total stock market wealth added since Trump’s first inauguration: $5.5 trillion.

Jobs: Over the last year, 2.2 million jobs were added to the economy, as the unemployment rate fell from 4.8% to 4.1% currently. Minorities experienced their lowest unemployment rates ever in December 2017, after a year of solid gains. Unemployment claims, meanwhile, are at a 45-year low.

GDP: President Trump entered office amid what appeared to be a dangerously slowing economy, with just 1.2% growth in the first quarter of 2017. But growth immediately picked up, rising to 3.1% in the second quarter, 3.2% in the third quarter, and, based on recent data, 3% or higher in the final quarter of 2017 — making the longest stretch of 3%-plus GDP growth since 2005.

Tax cuts: Trump’s $1.5 trillion in tax cuts lowered the corporate marginal rate from 35% to 21%, and cut rates sharply for middle-class and lower-income Americans. The results are in: Less than three weeks after the tax bill became law, more than 164 companies — ranging from AT&T and Apple to Visa and Wal-Mart — have announced pay hikes and special bonuses for their workers. Apple stunned markets last week, announcing it would bring $245 billion back from overseas, hire about 20,000 new workers and hand out bonuses of around $2,500 for each of its employees due to tax cuts.

Confidence: Our IBD/TIPP Economic Optimism Index stands at 55.1, well above the 49.3 average over that measure’s lifetime, signaling continued confidence in the strength of the economy. The optimism index is close to its all-time high and has now been positive — above 50 — for 16 months. Meanwhile, a separate IBD/TIPP index for financial stress is at its lowest since we began measuring it in 2007.

Regulation: Trump fulfilled his promise to cut more rules than he enacted. Indeed, he eliminated 22 regulations for every regulation he added, cutting some $8.1 billion in costs. More important, he pulled out of the ruinous Paris Climate Deal, which the NERA economic consulting group estimated would cost the U.S. some $3 trillion in compliance costs over the lifetime of the deal.

I can’t help but wonder if those who are protesting President Trump have 401k accounts and if they have checked their balances lately. Are the people protesting invested in the American economy in any way? Do they have jobs? Are they looking for jobs? And last of all, are we again dealing with paid protesters?

People With An Agenda Who Make Predictions Rarely Get It Right

Yesterday The New York Post posted an article about the impact the election of President Trump has had on the American economy. The article begins by reminding us of the predictions made that if Donald Trump was elected President, he would ruin the American economy. The people making this prediction chose to overlook the fact that President Trump had a reasonable successful record as a businessman.

The article reports:

Foreign tourism to New York City is set to rise 3.6 percent this year — defying yet another of the many doomsday predictions about Donald Trump’s presidency.

Back in February, the city tourism agency said Trump’s “travel ban and related rhetoric” would mean a drop of 300,000 visitors this year. But the NYC & Co. prophecy proved false.

…Of course, other predictions were more dire — particularly those about the stock market.

Finance expert Steve Rattner foresaw “a market crash of historic proportions” under a President Trump. Moody’s warned of a “weaker” economy. Many said 2 percent GDP growth was the best that could be hoped for.

Other doomsayers included Mark Cuban, CNBC’s Andrew Ross Sorkin and firms such as Bridgewater Associates and Macroeconomic Advisers. (A less-dishonorable mention goes to Nobel-winning economist Paul Krugman, who at least walked back his doomsaying about “a global recession, with no end in sight,” soon after election night.)

In fact, the Dow has climbed more than 25 percent since Hillary Clinton conceded. And the first two full quarters of Trump’s term both saw growth of 3 percent or more. Oops.

The article further reminds us that as President, President Trump has followed the Constitution. The article also reminds us that a downturn of the economy is always a possibility, but currently it seems as if President Trump’s business acumen is paying off for the American economy. It would be nice if Congress would clear the way for President Trump’s full economic agenda to go into effect. I have a feeling that all Americans would enjoy the results of that.

Why Did The Economy Turn Around In Less Than A Year?

On Wednesday, The Observer posted an article titled, “How Trump Got the Economy Booming in Less Than a Year.” That’s a question we need to answer if we are going to continue the boom.

The article reports some of the economic successes:

Early into his administration, Trump’s policies are already restoring growth. Real GDP grew 3.1 percent in the last quarter, up more than 50 percent from the average for the eight years that Obama was president.

In Trump’s first six months in office, more than a million new jobs were created, driving unemployment down to a 16-year low. The stock market set 34 new record highs, with headlines just last week screaming “Dow Races Through 23,000.”

The Conference Board’s Consumer Confidence Index rose to nearly a 16-year high, as did Bloomberg’s Consumer Comfort Index, both contributing to soaring retail sales. The National Association of Manufacturers Outlook Survey rocketed to a record 91.4 percent, the highest two quarter average for manufacturing optimism in the survey’s 20-year history. The Institute for Supply Management reported it’s barometer of manufacturing rose to 57.8, with over 50 indicating expansion of the manufacturing sector.

So how did this happen. Part of the reason for the growth is the promise of pro-growth tax reform based on the Reagan model of lower marginal tax rates. But there is another reason–based on actions, not promises–deregulation.

The article explains:

Trump has already made a lot of progress in removing Obama’s boot on the neck of American energy producers. That is why U.S. shale oil production has already soared to record levels since Trump entered office.

America today has the resources to lead the world as the top producer worldwide of oil, natural gas and coal. Removing America from the Paris Climate Accord, the start of the demise of Obama’s so-called “Clean Power Plan,” and Trump’s ongoing dismantling of the anti-American energy regulation of Obama’s EPA has already liberated America’s energy producers to assume these world leading roles.

Any economy with the world’s number one oil producing industry, number one natural gas producing industry, and number one coal producing industry is going to be leading the world with booming economic growth. And not just in energy but in manufacturing too. Because manufacturing is an energy intensive activity.

The article concludes:

The House and Senate have now passed budgets providing for many of the spending reductions proposed in Trump’s budget. Contrary to outdated Keynesian economics, government spending detracts from rather than adds to the economy, draining resources from the productive private sector, which is why Obama’s “stimulus” never worked.

In the 2010 and 2014 elections, voters decisively expressed what they think of the Keynesian doctrine that increased deficits and government debt contribute to economic recovery and restored growth. Voters first obliterated the House Democrat majority in 2010 and then took away the Senate Democrat majority in 2014.

Wait until America gains the reality of pro-growth tax reform. When it further restores booming recovery, voters will feel vindicated in their judgements and continue their support for the economic policies of the Trump administration.

I am not convinced that all of the voters will be smart enough to realize what has happened to the economy this year. Unfortunately, we have a bloc of voters who will be more concerned with whether or not the government will continue to pay them not to work. Part of the challenge in growing America’s economy is restoring America’s work ethic. That is part of the foundation of the change that needs to come.

Elections Do Have Consequences

In November, the American voters elected Donald Trump as President. I am not sure that the political left has yet recovered from what they would consider their worst nightmare. However, we are where we are. So where are we?

On October 7th, Wayne Allyn Root posted a story at Townhall describing the current state of the American economy.

Here are some highlights from the article:

The DOW has risen almost 25% since Election Day. That’s an increase of over 4,300 points in about 11 months. That’s the biggest increase in that period of time in the history of the stock market.

The S&P 500 has passed $20 trillion in value for the first time in history.

Because most middle-income Americans now have 401k plans because they are smart enough not to rely on Social Security, this is important to the average American.

More highlights:

As I’ve always argued, GDP is a far more important economic indicator than the stock market. GDP is hard evidence of how “mom and pop” are doing on Main Street. Under Obama, America suffered the eight worst consecutive GDP years in history. Obama’s eight-year GDP average was 1.3%- the exact same GDP number as the period of the Great Depression.

According to the Bureau of Economic Analysis, U.S. GDP has now been adjusted to a remarkable 3.1% growth in the second quarter (Trump’s first full quarter as president). That’s almost THREE TIMES HIGHER than Obama’s average GDP over his two terms.

Then there is job growth:

President Trump added 1.33 million jobs from January through September versus Obama’s record of losing 4.59 million jobs in that same first nine months. Remarkable.

But the latest jobs report just came out on Friday. According to the Bureau of Labor Household Survey, the number of employed Americans increased by an amazing 906,000 for the month of September. But that’s not even the highlight.

Remember that almost every single job created in eight years under Obama was a crappy, low-wage, part-time job. Well under President Trump last month, full-time jobs (the kind we all want and need) increased by 935,000- the most in one month in the 21st century. 

You would think that this sort of economic growth would put a damper on ‘Trump derangement syndrome.’ However, it seems to have had exactly the opposite effect. I think that is the result of the fact that the Washington establishment is working very hard to make sure President Trump does not succeed. Why? He is not a globalist, and he is not a Washington insider. His success would be a threat to the Washington establishment’s ability to come to Washington as middle-class Americans and leave twenty or thirty years later as  millionaires. As President Trump begins to accomplish things that have a positive impact on average Americans, expect the Washington establishment in both parties to become louder and more shrill.

Mixed Economic News Because Of The Hurricanes

Generally speaking, the economic news is good–the workforce participation rate is up and unemployment is down. That is a good thing. The only negative is the fact that according to CNBC America lost 33,000 jobs in the month of September. That loss is attributed to the hurricanes that hit Florida and the Gulf Coast states.

CNBC further reports:

Even with the surprise jobs number, the closely watched hourly wages figure jumped higher, to an annualized rate of 2.9 percent.

 Economists surveyed by Reuters expected payroll growth of 90,000 in September, compared with 169,000 in August. The unemployment rate was expected to hold steady at 4.4 percent. It declined even as the labor-force participation rate rose to 63.1 percent, its highest level all year and the best reading since March 2014.

“The lousy returns from the September jobs report will make little impression on observers, who essentially gave the labor market a free pass due to the impact of Hurricanes Harvey and Irma,” said Curt Long, chief economist at the National Association of Federally Insured Credit Unions.

An alternate number that includes discouraged workers as well as those working part-time for economic reasons also tumbled, falling from 8.6 percent to 8.3 percent, its lowest reading since June 2007.

The Workforce Participation Rate increased to 63.1. The following chart showing changes in the Workforce Participation Rate is from the Bureau of Labor Statistics:

As you can see, the rate is slowly inching upward.

According to Bloomberg News, Americans are going back to work.

Bloomberg reports:

Americans are coming off the labor market’s sidelines at a pace that intensified in September.

The number of people going from out-of-the-labor-market into jobs jumped to an all-time high last month, the Bureau of Labor Statistic’s employment report showed on Friday, even as the number of people flowing into unemployment fell. While these numbers can be volatile, they provide the latest confirmation that Americans are being pulled into work as the labor market tightens.

The positive changes in the economy are the result of the deregulation that has been going on since President Trump took office. There is still more deregulation needed. If all or part of the President’s tax reform proposals are put into effect, those reforms will also help encourage economic growth.

Preparing To Drain The Swamp

Yesterday Breitbart.com reported that at least three people who have been leaking information to the media from the Trump Administration will be fired when President Trump returns from Europe.

The article reports:

CBS News has confirmed from two sources that three leakers of classified information at the White House have been identified and are expected to be fired,” CBS News reported this week, adding, “Officials within the Trump White House believe leaks of Mr. Trump’s conversation with Russian Foreign Minister Sergey Lavrov are a ‘deliberate attempt’ by officials who are holdovers from President Obama’s administration and are trying to damage the Trump presidency.”

 In addition, this week, chief One America News Network (OANN) White House correspondent Trey Yingst also reported that three White House leakers have been identified and referred to the proper authorities.

There were numerous land mines left in place by the Obama Administration for the Trump Administration. It is time to drain the swamp and being implementing the programs that will help the American people and the American economy. As long as there are people leaking information to damage the Trump Administration, the necessary legislation will be bogged down and nothing will be accomplished. That is the goal of the globalists in both political parties in Washington. If President Trump can be prevented from putting his pro-growth policies in place, the establishment politicians can possibly take back Washington in 2018. That would not be pretty picture for America. It is time for some people to hear the words, “You’re fired.”

A Quick Summary Of The Trump Economy

Elections have consequences. Thank goodness that one of the consequences of the 2016 presidential election is a rollback of some of the regulations that were crippling the American economy. The Gateway Pundit has a summary of what has happened to the American economy under President Trump:

The DOW daily closing stock market average has risen nearly 14% since the election on November 8th. (On November 9th the DOW closed at 18,332 – on May 19th the DOW closed at 20,804).
* Since the Inauguration on January 20th the DOW is up 5%. (It was at 19,827 at January 20th.)
* The DOW took just 66 days to climb from 19,000 to above 21,000, the fastest 2,000 point run ever. The DOW closed above 19,000 for the first time on November 22nd and closed above 21,000 on March 1st.
* The DOW closed above 20,000 on January 25th and the March 1st rally matched the fastest-ever 1,000 point increase in the DOW at 24 days.
 * On February 28th President Trump matched President Reagan’s 1987 record for most continuous closing high trading days when the DOW reached a new high for its 12th day in a row!
* The S&P 500 and the NASDAQ have both set new all-time highs during this period.
* The US Stock Market gained $2 trillion in wealth since Trump was elected!
* The S&P 500 also broke $20 Trillion for the first time in its history.

Somehow this news has escaped the mainstream media.

The article also includes the following:

The article goes on to list job statistics and home sales statistics. I strongly suggest that you follow the link to read the entire article.

The article concludes:

In Summary

President Obama left President Trump with a weak economy and all sorts of domestic and foreign policy nightmares.  To date President Trump has had little time to address all of these messes but if he handles these as well as he has the economy Americans will soon be in a much better and safer place.

Overall based on the above data it is clear that President Trump is doing a solid, if not excellent job.

The mainstream liberal media won’t report this, but when looking at the economy, President Trump the businessman thumps the former community organizer Barack Obama.

Despite what the media is telling us, this does not sound like a White House in chaos. It sounds like a White House that is getting the country back on a solid economic footing despite tremendous opposition from the media.

It’s All A Matter Of Perspective

On Friday, Investor’s Business Daily posted an article about the American economy under President Trump. The article mentioned that the media is calling the 0.7% growth in the first quarter of 2017 a “lackluster beginning.” Somehow lost in that comment is the fact that President Trump did not take office until the end of January and that the Democrats in Congress have slow walked his cabinet appointments and obstructed anything he has attempted to do. Other than that, they have cooperated fully in helping improve the American economy.

The article reminds us:

CBS and the Associated Press tell us the first quarter’s “lackluster beginning … marks the first quarterly economic report card for President Donald Trump, who has vowed to rev up the U.S. economy.”

The Wall Street Journal, which should know better, called the number “the broadest report card on the economy in the nearly 100 days since President Donald Trump took office pledging a return to faster growth. …”

Bloomberg correctly stated that “the first-quarter figure isn’t a verdict on President Donald Trump’s policies,” but then added that economists are “generally skeptical that growth will reach his goal of 3% to 4% on a sustained basis.”

To start with, it’s simply not correct on any level to call this GDP number a “report card” on Trump. He hasn’t been in office long enough to take credit or blame for the GDP number, which, as any economist will tell you, is heavily influenced by policies in place well before the number ever comes out. That means President Obama.

The article contrasts the skepticism about President Trump with the mainstream media’s fawning over President Obama when he took office:

We tried to find mainstream media critiques of Obama’s policies early in 2009, but there were virtually none. In Obama’s defense, he did face a 6.1% decline in GDP in his first quarter. But no one blamed him for that. Instead, there was lavish praise, even as he stumbled from error to error. They blamed Bush.

For instance, the Media Research Center quotes Time’s Joe Klein, who wrote: “The legislative achievements have been stupendous — the $789 billion stimulus bill, the budget plan that is still being hammered out (and may, ultimately, include the next landmark safety-net program, universal health insurance).”

The article correctly concludes:

Eight years later, here is Obama’s “report card”: Slowest economic expansion for any president since the Great Depression, averaging just 2%, with no annual growth of more than 3%. More than $6 trillion in deficits, and a doubling of the nation’s debt to $20 trillion. A decline in real median household incomes of more than $4,000. Drops in homeownership to the lowest level since 1966. Labor participation rates near three-decade lows.

Sure, give Trump some time, and he’ll generate his own grades. But the first quarter GDP number has little or nothing to do with him, and the media’s bias is showing in suggesting it does.

There is a reason many Americans are tuning out the mainstream media in droves. If the mainstream media continues on its present path, there will be about two or three people actually paying attention to what they say.


Truth Is Always The First Casualty Of An Election Campaign

President Obama is not running for office this year. However, he has not hesitated to tell anyone who will listen what a great President he has been. Some of us aren’t convinced.

On Friday, The New York Post posted an article about President Obama’s recent claims about the economy.

The article states:

‘Anybody who says we are not absolutely better off today than we were just seven years ago, they’re not leveling with you. They’re not telling the truth,” Obama said last week. “By almost every economic measure, we are significantly better off.”

The article then goes on to report some of the actual statistics:

  • The labor force participation rate over that period has slid from 65.7 percent to 62.9 (the lowest reading since March 1978) — down 4.3 percent.
  •  On Obama’s watch, the percentage of Americans below the poverty line has grown, according to the most recent Census data, from 14.3 percent to 14.8 percent in 2014 — up 3.5 percent.
  •  Real median household income across that interval sank from $54,925 to $53,657 — down 2.3 percent.
  • Food Stamp participants soared in that time frame from 32,889,000 to 45,874,000 — up 39.5 percent.
  •  Meanwhile, from Obama’s arrival through the fourth quarter of 2015, the percentage of Americans who own homes sagged from 67.3 percent to 63.8 — down 5.2 percent.

I don’t think we can afford another four years of this sort of economic success.